sunz 2011 - evan stubbs - sas democratization of analytics

Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The Democratization of AnalyticsEvan Stubbs

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

Today’s key points

More than ever, analytics is strategic and valuable

The role of the analyst is changing

Everyone being able to do analytics is a good thing* As long as it’s appropriately

managed

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

Statisticians are sexy now

“I keep saying the sexy job in the next ten years will be statisticians. People think I'm joking, but who would've guessed that computer engineers would've been the sexy job of the 1990s?”

- Hal Varian

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The line it is drawnThe curse it is castThe slow one nowWill later be fastAs the present nowWill later be pastThe order isRapidly fadin'.And the first one nowWill later be lastFor the times they are a-changin'.

- Bob Dylan

The world is closing inDid you ever thinkThat we could be so close, like brothersThe future's in the airI can feel it everywhereBlowing with the wind of change

- The Scorpions

Photo: Christian Holmér

The winds ofchange …

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The power of change

Change is eternal

Change is inevitable

Change is constant

We need to grow with this change

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Analytics is becoming a team sport.

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What is business analytics?

Source: Defining Business Analytics and Its Impact on Organizational Decision-MakingComputerworld Customer Survey

When provided with the IDC definition of business analytics software, less than one-third of respondents (32%) rated themselves as extremely or very familiar with the product category, and only 10% rated themselves extremely familiar.

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

A simple definition …

Analytics:“ … any data-driven process which provides insight.”

Business Analytics:“ … leverages all forms of analytics to achieve business outcomes … through requiring:

Business relevancy Actionable insight Performance

management and value measurement”

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

Democratisation:Giving Access to All

Establish focused interfaces to support varying skills levels

Increase automation and “system smarts”

Extend model development to all parts of the organisation

Preserve model and process transparency

Ensure analytical quality control

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The perception of business analytics is changing …

Level 3:Competitive

Differentiation

Level 2:Value Chain

Level 1:Activities and Algorithms

Level 3:

• Analytics is about competitive differentiation

• Creating and re-using competencies is the answer

• The deliverable is sustainable competitive advantage

Level 2:

• Analytics is about value creation

• Processes are the answer• The deliverable is the

tangible and intangible return

Level 1:

• Analytics is about algorithms

• Tools are the answer• The deliverable is the

model

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But teams still face common challenges!

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Inevitably, teams need to create value

The External Value Chain:Value Creation

The Internal Value Chain:Optimizing Execution

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Activities and algorithms

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

Value creation for the organization

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And finally, the creation of sustainable competitive advantage

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Every tool has its place …

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The way things were

Advanced analytics is the domain of the specialist

Roles are based on technical knowledge

Analytics and reporting are different

Insight is the goal

Information Consumer

BI Specialist

Statistician

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Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.

The way things are moving …

Active Decision-Maker

Creator

Mentor

Everyone applies advanced analytics

Roles are based on competency and experience

Business analytics is about all analytics

Outcomes are the goal

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Why is this a good thing?

It reinforces competitive advantage

It focuses on creating value

It increases the importance of knowledge within the organisation

It more effectively manages risk

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SAS Rapid Predictive Modeler

Part of Enterprise Miner

Accessible through Enterprise Guide and the SAS Add-in for MS Office 4.3 (Excel only)

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Enabling everyone to deliver advanced insight

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Canada Post:Analytically-based competitive advantage

Established an analytics Center of Excellence

Established competencies

Went from 6 months of history to 30

Cut time to insight from 30 minutes to 15 seconds

Maintained profitability and revenue growth

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Bank of America:Highly scalable analytics

Manage risk

Reduced run-time from 96 hours to 4

Cut processing time by 90%

Reduced scoring time from 3 hours to 10 minutes

Increased accuracy of loss forecasting

Company Confidential - For Internal Use OnlyCopyright © 2010, SAS Institute Inc. All rights reserved.